Exchange Traded Funds

Financial ETFs touch a two-week high as yield curve steepensFinancial-sector exchange-traded funds pushed higher Friday as bond yields rose after a blowout May jobs report nudged investors into riskier assets. The Financial Select Sector SPDR Fund was 4.7% higher at midday, while the Invesco KBW Bank ETF was nearly 6% higher. Bond yields move in the opposite direction of prices. The gap between 2-year Treasury notes and those maturing in 10 years touched its widest in about two years, bolstering the business case for banks.

Energy, financials ETFs rally FridayExchange-traded funds made up of energy and financial stocks surged Friday morning after an unexpectedly strong U.S. payrolls report. The Financial Select Sector SPDR Fund popped nearly 7% in the first half hour of trading, while the Energy Select Sector SPDR Fund rose nearly 4%. It was the biggest one-day move for XLE in three weeks, which is still down more than 25% in the year to date. XLF is down nearly 15% in that period. Investors are finding value in sectors of the economy that have suffered more under the coronavirus lockdowns, and which are more likely to outperform as the economy recovers sooner than expected, as the jobs report signals.

We’re at month 2: Tracking the Fed’s efforts to keep credit flowing during the coronavirus pandemic New York’s MTA wants access to municipal facilityThe Federal Reserve is promising it has more firepower to use if a second wave of coronavirus infections hit the U.S., as more states unfurl plans to reopen after roughly two months of lockdowns.

Bank-focused ETFs surge by at least 3% Wednesday as investors shift to beaten-down sectorsExchange-traded funds that track the financial sector outperformed the broader market Wednesday, extending a winning streak that suggests investors are wagering on an economic recovery that could help propel financial shares higher. Financials were the best performer among the S&P 500's 11 categories. The Financial Select Sector SPDR Fund was trading 3% higher in morning action. The Vanguard Financials ETF was 3.1% higher, and the SPDR S&P Bank ETF jumped more than 4%. Financials have taken a beating as investors worry about the impact of a stalled economy in the wake of the coronavirus pandemic and the pain from a plunge in oil prices on companies' ability to service their debt. Rock-bottom interest rates don't help banks, either. XLF is down more than 22% in the year to date. But on Wednesday, technology companies sold off, sending the Nasdaq Composite Index down nearly 1%. If investors are swapping high-flying bets for stocks considered undervalued, it may suggest more confidence in the economic outlook in the aftermath of the viral outbreak.

What’s the most shorted sector? The answer might surprise you Are the short sellers telling us that biotech is due for a correction?The biggest bets among the most bearish investors might be instructive for the rest of us.

Fed says risks to the financial system are worrying insiders Corporate leverage cited as a significant problem that could be exposed due to problems created by the coronavirusRisks are lingering in the U.S. financial system despite unprecedented actions taking by the Federal Reserve in recent weeks to limit the damage wrought by the COVID-19 pandemic, according to a recent report.

Fed says it will start buying corporate bond ETFs in early MayThe Federal Reserve said it would start buying corporate bond exchange-traded funds in early May, as it offered up further details on its planned purchases of debt from U.S. businesses . Soon after, the central bank will start purchasing debt issued by companies directly, and from the market. The Fed also said it could buy an entire sale of corporate bonds by itself. Even without having yet bought bonds, the central bank's announcement of the lending programs have been enough to arrest turmoil in corporate bond trading, and has allowed businesses like Boeing to issue debt to raise cash.

Big banks blocked just for tonight from loan program for small businesses SBA only accepting loans from smaller lenders for 8-hour period on WednesdaySmaller lenders on Wednesday evening were getting special access to a key loan program for small businesses hurt by the coronavirus crisis, in a development that big banks quickly criticized.

Bank of China sold oil’s May contract into a historic implosion in crude — and retail investors may have gotten crushed Retail investors may have lost $85 million in Bank of China’s oil-related funds, Bloomberg reportsAs the dust settles from a record-breaking crude selloff, it’s turning out that retail investors in China may have been on the hook.

Financial ETFs rise on hopes of a return to normal economic activity Exchange-traded funds that track the financial sector rose on Friday, buoyed by hopes that economic activity might get back to normal soon. The Financial Select Sector SPDR Fund and the Vanguard Financials ETF were both up more than 4% in afternoon trade, while the SPDR S&P Regional Banking ETF , with more direct exposure to consumers, popped 9.1%. "A relief rally remains in play," economist David Rosenberg wrote of financials. But he and other analysts aren't sure markets are out of the woods yet. Technical indicators suggest financials may stay where they are for some time, Rosenberg added, "before sustainable upside is able to set in." Among funds that track the sectors of the S&P 500, XLF is the second-worst performer in the year to date, down 30%.

Disappointment on corporate earnings could undermine hopes for Fed to rescue markets, says ‘Warren Buffett of bonds’ Corporate earnings likely to support a more cautious stance to risk appetite, says Loomis Sayles’ Dan FussBillions of dollars are flooding back into large swathes of the U.S. corporate bond-market and equities on the bet that the Federal Reserve’s unprecedented measures in recent weeks will make investors whole and limit the damage from the COVID-19 pandemic.

Grocery prices are rising as eat-at-home demand soars during the coronavirus pandemic Smucker’s and Conagra say the number of promotions will decline in the coming monthsRetailers and food manufacturers are reducing the number of promotions even as customers snap up even more groceries amid the COVID-19 outbreak

Fed announces new lending plans it says will provide $2.3 trillion in support for economy. Fed trying to provide ‘as much relief and stability as we can,’ Chairman Powell saysThe Federal Reserve on Thursday took new actions to provide up to $2.3 trillion in loans to support the economy.

How the Fed’s historic leap into buying corporate debt is working even before the purchases formally start Fed’s secondary facility could top $500 billion, potentially about half of expected U.S. high-grade supply for 2020Highly rated U.S. companies are on a borrowing spree, loading up their balance sheets with cash, even before the Federal Reserve starts buying corporate debt to help soothe the economic fallout of the coronavirus pandemic.

Time to buy Bank of America stock to get ‘defensive,’ D.A. Davidson says BofA a leader in de-risking exposure to mortgages and credit cards since 2008 financial crisis, says analyst who downgraded Goldman Sachs at the same timeShares of Bank of America Corp. got a lift Thursday, after analyst David Konrad at D.A. Davidson turned bullish, saying he believed the bank will outperform its peers during the economic weakness brought on by the COVID-19 pandemic.

Caught out by big market swings, traders rushed to short U.K. stocks in March. That’s a 40% surge since the same time last year. Traders were caught by surprise as they scrambled to snap up short bets in early March as the coronavirus outbreak spread There were 40% more net short positions reported to the U.K. regulators in the first half of March compared with last year.

The Dow is on pace for its worst month since the Great Depression, but here’s why all hope isn’t lost amid the coronavirus crisis The percentage drop so far in March for the Dow would rank as its second-worst in history after the 30.7% monthly skid in September of 1931So is all hope lost for investors anticipating the markets will turnaround? Here’s what some stock market experts think.

Investors pull record $108 billion out of bond funds this week More than $90 billion was poured into money market funds this weekThe largest outflows in bond funds on record this week point likely reflect money managers selling illiquid assets like corporate debt to meet outflows.

Fed could buy $4.5 trillion of debt if it starts snapping up corporate bonds, says Bank of America Corporate bond trading has seized up amid worries that businesses will default on their obligationsAnalysts at Bank of America Global Research say close to half of the U.S. corporate bond universe could be available for purchase if the Federal Reserve starts buying corporate bonds.

These are the safest and highest dividend-yielding REITs as the coronavirus spreads, BofA says The data center, grocery-anchored strip malls and medical office building sectors are among the most defensiveAs the stock market tumbles and Treasury yields sink to record lows on fears of the economic impact of the coronavirus outbreak, BofA Securities provided its clients with a list of the most defensive REITs with the highest yields to help provide some protection.

Bank ETFS tumble Thursday as bonds extend slide to historic lowsExchange-traded funds with exposure to bank stocks tumbled Thursday as investors piled into the safe haven of bonds, sending yields to fresh all-time lows. The KBW Bank ETF was down about 5.7% midday, and the Financial Select Sector SPDR lost 4.8%. In the year to date, those funds are down 22.5% and 14%, respectively. Banks make money when interest rates are higher, and when there's a steeper differential between shorter and longer-term rates, but the Federal Reserve on Tuesday made a rare emergency rate cut of 50 basis points, its first such monetary policy move since the 2008 financial crisis.. On Thursday, the 10-year Treasury yield has plumbed fresh all-time lows, hitting an intraday nadir on Thursday at 0.898%, as worries about the impact of COVID-19 on global economies and supply chains ratchetS higher.

Here’s how you can prepare your stock portfolio now for the coronavirus recession Stick with solid defensive stocks and keep emotions under controlStick with solid defensive stocks and keep emotions under control, writes Vitaliy Katsenelson.

Wells Fargo will settle regulatory investigation of ETFs for $35 million Bank accused of pushing ETFs that were too risky for some investorsWells Fargo & Co. agreed to pay $35 million to settle regulatory claims that its financial advisers recommended exchange-traded funds that were too risky for some clients.

The asset manager ‘oligopoly’ is still intact, Morningstar data show Bond funds are also attractive to investorsThe top two fund managers solidified their hold on their share of assets under management in 2019, according to a report to Tuesday.

ETFs make the bond market safer, bank analysts say. No kidding, say ETF analysts. Investor sentiment toward bond ETFs has caught up to that of industry: nearly half of all 2019 inflows were into bond fundsETFs aren’t likely going to crash the financial system, but they are making it more efficient, according to research out this week.

Coronavirus could drive up out-of-stocks at stores by April: Wells Fargo Wells Fargo says Walmart and Target may be first to suffer supply issues related to coronavirusRetailers are starting to worry that supply chain disruptions from the coronavirus could start having an impact on what’s on store shelves by mid-April.

Bitcoin prices are kicking off 2020 just like they ended 2019 — outperforming the stock market Bitcoin prices are up more than 20% this year Bitcoin’s price surged nearly 98% in 2019, as measured by futures traded on the CME Group Inc. and is up 23% so far this year. Here’s why.

BlackRock’s Fink pressed to take action over words in dumping fossil fuels Annual letter ‘with teeth’ promotes sustainability but advocates want to see support of climate-related shareholder proposals, fossil-free options in 401(k) fundsBlackRock’s Larry Fink may believe that embracing sustainable investments is key to long-run returns, but he must turn rhetoric into results, say climate advocates. Of BlackRock’s nearly $7 trillion in mutual funds, exchange-traded funds, index-tracking funds and more, some $87 billion can still be linked to fossil fuels through late last year.

Up your game in 2020 with these five quick and easy investing moves If you’ve got 15 minutes, use it wisely and get your portfolio in orderHere are five money moves that will get your portfolio in order fast.

Short bets against long-term Treasury bonds hit record as economic pessimism wanes The rapid shift in sentiment is reflected growing bets against longer-term U.S. government debtSpeculators accumulate record short bets in long-term government bond futures, which have seen a significant run-up in gains this year.

Here’s where the 10-year Treasury yield is headed in 2020 as Brexit and U.S. - China trade headwinds clear away Should investors jump back on the “reflation” train? Two major sources of uncertainty which have long kept investors on edge in 2019 appear to be clearing away this week, smoothing the runway towards higher long-term government bond yields.

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